Velocity Midstream to Construct Oklahoma Oil Pipeline

Velocity Central Oklahoma Pipeline LLC, a wholly owned subsidiary of Velocity Midstream Partners, LLC, has secured long-term customer commitments supporting the construction of a second oil pipeline through the South Central Oklahoma Oil Province (SCOOP), providing connections to Cushing and the Wynnewood refinery owned by CVR Refining, LP.
Velocity Midstream has obtained long-term anchor customers to support the new 41-mile 8″pipeline and four terminal expansions that will allow producers to transport up to 100,000 barrels per day of truck injected or pipeline gathered barrels to the most reliable and competitive markets. This new pipeline will directly connect to the company’s previously announced 26-mile 12″ Wynnewood Pipeline project expected to be in service this April at an initial capacity of 45,000 barrels of oil per day and maximum capacity of 120,000 barrels of oil per day.
The new pipeline is projected to be in service mid-2017 and runs parallel to Velocity Midstream’s existing SCOOP system which is fully contracted and has a current capacity of 100,000 barrels per day. The new pipeline and planned gathering lines, combined with the four newly constructed dual-product truck injection terminals, will enable producers throughout the SCOOP to segregate their heavier crude barrels produced from the Springer and Woodford oil formations from their lighter barrels produced from the Woodford condensate formation.
“We are excited to complete the Wynnewood Pipeline and to announce the looping of our existing SCOOP system in support of increased activity in the crude oil and condensate windows of the SCOOP play,” said Rick Wilkerson, Velocity Midstream’s President and CEO. “Velocity is focused on serving the producers in the SCOOP by decreasing their transportation costs and connecting their barrels to the highest valued and most reliable markets.”
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